Video: Construction Week In Focus | 2019 budget boost for infrastructure
Latest CW bulletin explores role of infra in Saudi's and Dubai's 2019 budgets
Infrastructure construction and management companies are set for growth as Saudi Arabia and the UAE, led by Dubai, prioritise the sector in their 2019 budgets.
Construction Week's video will be published at 9am Dubai time on 8 January, 2019. Enable a YouTube reminder for yourself to receive an early notification to watch the report.
Total expenditure in Saudi Arabia for 2018 is expected to reach $266.6bn (SAR1tn), while revenues for the year are projected to note 29.4% year-on-year (YoY) growth, reaching $238.6bn (SAR895bn).
Expenditure in 2019 is expected at $293.2bn (SAR1.1tn) – a 7.3% YoY hike fuelled by a 20% increase in capital expenditure, which is valued at $65.6bn (SAR246bn) in line with Vision 2030’s goals.
Social spending takes up to 42% of the kingdom’s expenditure for the year. Crown Prince HRH Mohammed Bin Salman said the Saudi government would continue to launch Vision 2030 programmes in 2019 with a view to strengthening local infrastructure, and creating more citizen jobs and an attractive investment environment.
Meanwhile, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, approved the 2019 public budget for the emirate, with planned expenditure worth $15.5bn (AED56.8bn).
The 2019 budget is based on population growth figures; a commitment to consistent infrastructure development; the objectives of Dubai Plan 2021; and the benefits of hosting Expo 2020 Dubai. Planned spending comes in line with the directives of the Ruler of Dubai to “raise the happiness and wellbeing of the citizens and residents” of the emirate.
Of the total share, infrastructure projects account for $2.5bn (AED9.2bn) of the 2019 budget, “despite the completion of some infrastructure projects related to Expo 2020 Dubai”. The planned schemes for 2019 will cater to the need to develop and upgrade Dubai’s infrastructure and continue its growth as a preferred destination for business and entrepreneurship.
In this video, Construction Week's editor, Neha Bhatia, and senior reporter, Jack Ball, review how the 2019 budgets for Saudi Arabia and Dubai will impact regional construction companies that provide infrastructure-related services.
Construction Week In Focus is a weekly bulletin of the Middle East's top news from the real estate development, contracting, MEP, facilities management, and equipment sectors.
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Construction Week In Focus episodes are published each Tuesday at 9am.